"Successful GM, Chrysler Dealership" For Sale
Successful GM, Chrysler Dealership
Location: Mississippi > Confidential
Industry: Auto Related > Auto Dealers
Financials
Asking Price: $1,500,000
Cash Flow: $776,677
Cash Flow Comments: EBITDA
Real Estate: $2,000,000 (Not Included in Asking Price)
Seller Financing: Maybe
Business Summary
This is a very well established dealership that continues to have strong profits and sales. The area is growing and strong economically with job growth. Strong service department and parts sales departments are very profitable and enjoy a great reputation. One owner is willing to continue to operate as a minority partner. Only serious inquiries please.
About the Business
Year Established: 1955
Facilities: Great
Market Outlook and Competition: Strong
About the Sale
Management Training and Support: Yes
Reason For Selling: Retirement of majority owner
More by Robert Farago
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An important point that bjcpdx brings up: EBITDA not being a Generally Accepted Accounting Principle. EBITDA is part of what caused the dot-com bubble to burst.
Let me tell you folks a brief story about EBITDA. A very good friend of mine was given a Ford dealership near Dallas, Texas in exchange for the Ford handcuffs (massive debt, put most of his own savings in the deal.) According to the former weasels in charge, the dealership was still making a profit over the first half of 2007 and had EBITDA that was positive well into the six figures. Turns out they were losing over $100k a month. My friend thankfully made the best of a very bad situation. But the profits simply weren't there and for good reason.. He ended up being given another Ford dealership in South Carolina... with Lincoln and Mercury in tow as well. The person who buys into this deal will literally own nothing. This fellow (to use the term lightly) is trying to become an instant lotto millionaire all over again and use the real estate as a foundation for a six-figure income in perpetuity.
Qwerty : They feel that their car is a reflection of their manhood, causing them to spend way more money than is justified for what should be a simple transportation device...the only thing that makes a real difference between cars on their commute is the quality of the stereo. That has to be the best comment ever. Made my day. I used to work with one of these. He made $45k a year but drove a brand new Lexus IS for his 20 minute commute as he was a "car" guy.